(Unofficial translation)

I am glad to see you all. We’re gathered here to look back on our economy and the livelihood of the people over the past two and a half years and to discuss the direction of economic policy for next year. As this is a very important meeting, we are joined not only by government officials and committee members but also by many others from labor and business sectors as well as major business associations.

Next year should be when we earnestly reap tangible results from the policies my Administration has carried out so far. You have made great efforts to date, but I urge you to renew your commitment with a sense of facing a critical juncture.

Amid demographic changes caused by a low birth rate and aging population and such structural difficulties as low growth and the socio-economic divide, our economy is fiercely competing with others from around the world in order to stay ahead in the age of the Fourth Industrial Revolution while fighting back the high waves stemming from protectionism. The Government had to embark on a challenging journey along an unfamiliar path while transforming the underlying fundamentals of our economy because it was impossible to respond to the new era through existing methods. It is very encouraging to see mutually supportive relations forming between small and large businesses as well as between businesses and labor while the private and public sectors are working with the Government. Even with the Government support provided thus far, it would have been impossible to make meaningful changes had businesses themselves not strived to innovate.

The amount of investment in new business ventures and the number of newly-established corporations have both reached record highs this year. The number of unicorn companies – unlisted startups valued at over 1 trillion won – has significantly increased to 11 this year from two in 2016, placing Korea sixth in the world. Hopes for future growth engines have also been raised thanks to increased investments in system semiconductors, biohealth and future cars. While household income has risen evenly across the entire economic spectrum, the income of the poorest 20 percent, or the bottom quintile, has shown a marked upward trend. Income distribution is also getting better as seen in the improvements in the income quintile ratio.

It is very fortunate that the job market is showing signs of recovery. The number of employed people has increased by more than 300,000 for four months in a row. The three main indicators – the number employed, employment rate and unemployment rate – are all improving, and the number of those permanently hired is steadily rising as well, showing clear recovery trends in both the quality and quantity of employment. The type of mutually beneficial local jobs that began in Gwangju through concerted efforts among labor, management, civic groups and local governments, are spreading to other parts of the country, including Miryang, Daegu, Gumi, Hoengseong and Gunsan.

Most cross-shareholding links of large business groups have been resolved, unfair trading practices have been significantly improved, and the amount settled through the mutually beneficial payment system has exceeded 100 trillion won. As such, a fair market economy is taking root. However, many people have yet to sense the benefits. We must work to further raise public confidence in government policy. 

First of all, the quality of jobs has to be further improved. Employment slumps among those in their 40s and in manufacturing have to be surmounted. We also need to address the difficulties facing the self-employed and microbusiness owners, and investments and regulatory innovation for a second venture boom have to be further accelerated. A minimum wage hike and 52-hour workweek are paths that our society must follow without fail. We will have to work together with the people to help these policies take root while preparing supplementary measures to ensure that the nation’s economic goals conform to reality. 

It is only natural for a thorough overhaul of fundamentals to take time before bearing fruit. Still, we should be able to help make people confident that we’re proceeding in the right direction. I ask you to continue to explain and keep pace with the public in order to win their understanding. I urge you all to take the lead with a determination that, if a single job or investment can be made, the Government should do everything it can. 

According to overseas evaluations, our economic fundamentals remain very solid. In the World Economic Forum’s Global Competitiveness Index, Korea has risen by two notches for the third consecutive year, ranking 13th among 141 countries this year, and it now maintains its highest sovereign rating ever. Our country’s CFR Sovereign Risk Index also hit its lowest level since the global financial crisis, and Korea has the world’s ninth-largest foreign exchange reserves and good fiscal soundness. Amid a worldwide decline in foreign investments, those of Korea reached a record high last year and again exceeded the US$20 billion targeted for this year. 

Recently, large-scale new investments have been increasing in such sectors as semiconductors, displays, future vehicles, biohealth and carbon fibers. In addition, we’ve seen significant results in regard to the localized production of materials, parts and equipment and the diversification of import sources. 

Although the global economy is undergoing difficulties, our economy is making steady progress. What can turn a crisis into an opportunity is the confidence of economic stakeholders. I ask you to summon the will to achieve mutual prosperity so that large companies, SMEs, employers and workers can lend strength to each other.

The budget plan for 2020 was finalized at 512.3 trillion won, the largest ever. In addition to the funding to promote innovation for new industries, budget allocations to foster inclusiveness have increased significantly to improve ordinary people’s livelihood, welfare and quality of life. Conditions have been created so that our economy can grow in a more dynamic and compassionate manner. Next year, we intend to focus on implementing structural innovation in five sectors and selecting and pushing ahead with eight key tasks related to vitality and inclusiveness. We will create a more dynamic economy by boosting tourism and domestic consumption; fostering the data economy; nurturing new industries; and strengthening the competitiveness of materials, parts and equipment industries, in addition to large-scale investment projects worth 100 trillion won. 

We will strengthen job-related support for those in their 40s, women and young adults, tackle the problem of poverty among the elderly, assist low-income households in the bottom quintile and help improve the operation of microbusiness owners and the self employed in order to ensure that they can experience a more compassionate economy. Achieving these goals requires cooperation and coordination that goes beyond individual ministries and agencies. I ask the economy-related ministries and agencies to do their utmost as a single team. It takes time for policy changes to generate effects. We need to show patience until these efforts bear fruit. 

Policies focused on jobs and income distribution started to show results recently because of the Government’s steady efforts while maintaining consistency in those policies. Innovation and inclusiveness are key values that we cannot give up on. We must be successful, and we can succeed. Only when all of you here have faith will the people, businesses and all other economic stakeholders come to gain confidence. 

I ask you to carefully listen to the voices of those in need and the valuable opinions of experts and once again look for areas where further improvements and achievements can be made. I’d like to see the direction of the 2020 economic policy to be discussed here today provide hope to the people.